$875 Million Wiped Out as Trump’s Europe Tariffs Trigger Crypto Crash

Group 1 - President Trump's announcement of escalating tariffs on eight European nations triggered $875 million in crypto liquidations within 24 hours, with Bitcoin dropping 3% to $92,000 as traders reduced risk exposure [1] - The affected nations include Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, facing 10% tariffs starting February 1, escalating to 25% by June 1 [2] - The tariff announcement led to significant liquidation in derivative markets, with $788 million from long positions and only $83 million from shorts, indicating traders were caught off guard by geopolitical risks [3] Group 2 - Major exchanges experienced significant liquidations, with Hyperliquid leading at $262 million, followed by Bybit at $239 million and Binance at $172 million, with long positions making up over 90% of forced closures [4] - Despite the tariff shock, Bitcoin futures open interest showed signs of recovery, although renewed pressure is anticipated due to the geopolitical situation [4][5] - US stock futures fell 0.7% for the S&P 500 and 1% for the Nasdaq, while European equity futures dropped 1.1%, reflecting a risk-off sentiment across asset classes [5] Group 3 - Gold prices surged 1.5% to record highs as investors sought safety, while the dollar weakened 0.3% against the yen [6] - Analysts suggest that the delayed implementation of the tariffs may lead to a more measured investor response, potentially easing volatility as markets digest the announcement [6]